100,000 to miss out on pension thanks to 'flat rate'

23 June 2016
100,000 to miss out on pension

Letters are going to be sent out, informing over 100,000 people who are approaching retirement, telling them that they're not going to get a penny of the new 'flat rate' state pension.

So what's the deal? Well, there's new rules which will disqualify anyone with fewer than ten years of National Insurance contributions for any state pension at all.

That means, if you have been someone who decided to stay at home to look after your children, or have not worked for another reason, you will lose out thanks to these new rules.

Designed to make the system simpler, this new flat rate scheme worth £155.65 a week was introduced in April. However, the Commons Work and Pensions Committee found that there's was a lot of confusion about the whole thing.

It seems that many people are expecting to receive £155.65 a week, but they won't.

With that, the Government have caved in after the Work & Pensions committee put pressure on them to sort this out. Letters will be sent informing those who don't meet the minimum ten year qualifying period for the new state pension.

It is estimated that somewhere in the region of 100,000 people aged over 50 will be hit with this news.

Frank Field, chairman of the committee, said: "The committee has encountered untold confusion among people who wanted to know the value of their state pension, and who had received little or no communication from the Government."

"It looks as though the Government will begin to apply the lessons from our evidence, by writing to people who do not meet the minimum criteria for the new state pension. We very much welcome this initiative."

TOPICS:   Banking

1 comment

  • MEE

    "That means, if you have been someone who decided to stay at home to look after your children, you will lose out thanks to these new rules."

    ERR HAVE YOU NOT HEARD OF HOME RESPONSIBILITY PROTECTION? 

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